With Terrible New Job Numbers, Can We Finally Say Obamanomics Has Failed?

It doesn’t matter what you call it or when the policies are imposed, expanding the size and scope of government is bad for prosperity. So the real question is when will the establishment press finally admit that Obamanomics has failed?

The unemployment numbers released today certainly will not be easy to spin. Here’s the chart I periodically update, showing the actual unemployment rate compared to what the White House claimed would happen if we flushed $800 billion down the Washington rathole.

This is simple, the government needs to step aside and allow the economics to find their own level. The government believes they have the soliction, but they don’t. Cut the government glut, cut corporate tax, do not raise taxes on individuals and the economy will grow.

Bring the troops home and stop the insane military spending which is economicly a disaster. Down size the out of control government agenty’s that exceed their original fuctions.

The American middle class is now debilitating the very system that keeps it in the top 10% of worldwide prosperity. So the top 10% in the world are essentially waging war on the top 1% and the whole system is going down.

There’s no turning back from such decisions. A perpetual vicious cycle of high unemployment, calls for more class warfare, mandatory welfare, and decline is in America’s future. Too late to turn back. Americans had their chance under the sun, finally muffed it.

Daniel, you keep ignoring all of the jobs that the stimulus created in those countries where the products that we consume are manufactured. Why, our Chinese global partners have just raised interest rates there again to try to slow down the boom. The stimulus was a success! Quit complaining.

And there is more good news. Reports are that our Congress is on the verge of ratifying the free trade treaty with S. Korea, Panama and Colombia, first negotiated by that great statesman, George W. Bush, and now endorsed by President Obama. Big Kapital will get the treaty they want so badly and the liberals will get a very generous package of “trade adjustment assistance” for displaced US workers (compliments of the US taxpayer), which the Economics Policy Institute estimates will number 880,000 within 7 years.

This graph doesn’t show that the stimulus wasn’t effective, it shows that the recession was much bigger than they had predicted. Considering the funds weren’t being spent until 2010, the graph actually shows the stimulus did what it was expected to.

It was predicted to go from a peak of 8% to 7% and it actually went from a peak of 10% to 9%, Thus, this graph really doesn’t support the claim that the stimulus was ineffective at all.

The fundamental problem is that the year 2021 graph will retrospectively show a 10 year growth trendline of 1-2% with further declining prospect in the rate of growth itself (i.e. second derivative also negative)

That of course assumes that the ocioeconomic vicious cycle of HopeN Change –> Less Prosperity –> Vote for more HopeN Change, does stabilize at the French slow decline equilibrium point. But with America descending from the heights of prosperity at precipitous rates, we may just blow past the French slow decline equilibrium point and go directly to Greece.

The bad economy may discredit Obamanomics. However, at the same time, with so many people now hurting, even conservatives are starting to break down and resort to the compassion of “Hope and Change”. When you’re desperate, it becomes increasingly hard to resist the pernicious relief of redistribution at the polls. Hence, Obama’s popular class warfare rhetoric: “The few will finance inefficient mandated central plans for everyone”. The vicious cycle of decline in all its glory. A temporary Republican victory in 2012, I’m afraid, will make little difference in America’s trajectory towards Francification. Under current American perceptions as to what made this country so prosperous, the road to Francification seems all but inevitable, even if occasional Republican victories somewhat slow down the process.

The overriding rule of simple arithmetic is that:

In the long term, slow growth rates dwarf whatever short gains the majority believes they can gain by class warfare, as well as all macroeconomic gimmicks intended to increase prosperity through lower incentives to produce.

As I have said a few times:

“Mandatory compassion brings the inevitable cruel result of economic decline”

The fact that virtually all the publics of European nations (except Switzerland perhaps?) were unable to resist the siren calls of class warfare and fell into the elephant pit of slow growth, should have acted as a dire warning to Americans against the class warfare policies put forward in the 2008 election. Yet, with classic and world renowned American naiveté Americans said: “Looks like a good idea, let’s try it for a while!”. Well that was checkmate for American prosperity. Now, an ever declining prosperity and natural tendency of a hurting public towards asking more government help, has created an incredible juggernaut for American prosperity.

If you replace the dog with Europe, the cat with America, and the washing machine with the Obamanomics of Class Warfare/State Welfare, in the Gary Larson cartoon below, you get the picture of what happened in the 2008 election:

Someone else said it better than I ever could –
“Away with the whims of governmental administrators, their socialized projects, their centralization, their tariffs, their government schools, their state religions, their free credit, their bank monopolies, their regulations, their restrictions, their equalization by taxation, and their pious moralizations! And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works.” – Claude Frederic Bastiat

Liberals believe the answer to all social and economic problems is more government. They believe that only confiscation from the rich and the subsequent enslavement of the poor to the government’s so-called compassion is the only way for things to be fair. The problem with their logic is that they don’t have any. It doesn’t work, it never has, and it never will. Why? Because eventually the producers will reach the saturation point and then tell the government and it’s loyal pack of zero-liability voters to go screw themselves. When the producers remove their ability to produce, then what? Utter collapse. Which, I believe, is what Obama wants. Then he can remake our economy into his own idealogical image, which comes directly from the writings of Karl Marx.

Producers do not have to completely drop out for decline to arrive (and clearly Mother Teresa keeps working even under 100% tax rates).
It is only sufficient that producers drop out in more numbers, or pull back with more intensity, than in other nations for decline to catch up – sooner rather than later.

Obama is not a Marxist. Simply a very intelligent, and to large extent lucky, person who has figured out that American people can be bamboozled with ideas of mandatory collectivism for long enough (perhaps 8 years?) to make him (and other people down the administration command tree) one of the most famous people to ever have lived on the planet.

But, in a democracy, it is ultimately THE people who have to – and do – buy these pernicious ideas on how to maintain prosperity.